President Bola Tinubu has formally requested the House of Representatives’ approval for a new external borrowing plan totaling over $21.5 billion, alongside a ₦757.9 billion domestic bond issuance aimed at settling outstanding pension liabilities.
In a detailed letter to the Green Chamber, President Tinubu outlined the strategic importance of the 2025–2026 borrowing plan, which targets critical sectors including infrastructure, agriculture, health, education, water supply, security, and employment generation.
The requested external borrowing comprises USD 21.5 billion, EUR 2.19 billion, 15 billion Japanese Yen, plus a 65 million Euro grant.
President Tinubu stressed that the borrowing is essential due to the country’s significant infrastructure deficit and the fiscal challenges following the removal of the fuel subsidy. He emphasized that the funds would be channelled toward national development projects, including railways and healthcare, across all 36 states and the Federal Capital Territory.
“This initiative aims to generate employment, promote skills acquisition, foster entrepreneurship, reduce poverty, enhance food security, and improve the livelihoods of Nigerians,” the President stated.
Separately, the President also sought approval for the issuance of Federal Government bonds in the domestic market to address accrued pension liabilities under the Contributory Pension Scheme (CPS) amounting to ₦757.98 billion.
Citing the Pension Reform Act 2014, Tinubu noted that revenue constraints have hindered the government’s compliance with pension obligations, causing arrears and hardships for retirees.
He highlighted that the bond issuance plan had received Federal Executive Council approval on February 4, 2025, and stressed its importance for restoring confidence in the pension system and improving retirees’ welfare.
“Settling these pension arrears will boost liquidity in the economy and ensure retirees can meet basic needs, improving health outcomes and preventing untimely deaths,” the letter explained.
President Tinubu concluded by appealing for swift legislative approval and assured lawmakers of his administration’s commitment to transparency and accountability.
The request has been referred to the House Committees on National Planning and Economic Development and Pensions for further action.
